Len Imbrogno.....Seriously now

Poverty Bay · 06-06-2007, 12:16 PM

Mike:

Further to the observation that "if a nonprofit corporation engages in profit-making activities unrelated to its recognized nonprofit purpose, it must set up a separate corporation to engage in that activity or risk losing its nonprofit, or tax exempt status", one has to wonder if this wasn't a factor in NHRA's decision to deal off NHRA Pro. The objectives of the non-profit NHRA corporation, as have been stated before, focus on safety, education, etc.. However, in recent years, their activities and revenues have primarily been focused upon what could be characterized as the entertainment business of pro racing. It must have been increasingly difficult for NHRA to claim that their big-league entertainment operation somehow met its non-profit objectives. Hence, it needed to either deal the pro racing operation off to others or create its own for-profit corporation to keep it separate from the grass-roots operation from whence it came. That they chose the former course of action is perhaps just another sign that NHRA really does intend to return to its roots. Let's hope so.

06-06-2007, 12:16 PM	#23
Poverty Bay Junior Member Join Date: Jul 2005 Posts: 4 Likes: 0 Liked 0 Times in 0 Posts	Mike: Further to the observation that "if a nonprofit corporation engages in profit-making activities unrelated to its recognized nonprofit purpose, it must set up a separate corporation to engage in that activity or risk losing its nonprofit, or tax exempt status", one has to wonder if this wasn't a factor in NHRA's decision to deal off NHRA Pro. The objectives of the non-profit NHRA corporation, as have been stated before, focus on safety, education, etc.. However, in recent years, their activities and revenues have primarily been focused upon what could be characterized as the entertainment business of pro racing. It must have been increasingly difficult for NHRA to claim that their big-league entertainment operation somehow met its non-profit objectives. Hence, it needed to either deal the pro racing operation off to others or create its own for-profit corporation to keep it separate from the grass-roots operation from whence it came. That they chose the former course of action is perhaps just another sign that NHRA really does intend to return to its roots. Let's hope so.